LS0921: You visited Subway that’s the fast food restaurant to purchase a Combo worth Rs 499. The restaurant paid for the raw material and utilities amounting Rs105 for each sale. In addition to that, the restaurant also paid for certain expenses in cash in total Rs 50 per sale

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Question: You visited Subway that’s the fast food restaurant to purchase a Combo worth Rs 499. The restaurant paid for the raw material and utilities amounting Rs105 for each sale. In addition to that, the restaurant also paid for certain expenses in cash in total Rs 50 per sale.
Discuss how these financial transactions will be recorded by way of journal entry, and also, discuss the various stages of the whole accounting process.


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